PROJECT COST AND MEANS OF FINANCE

PROJECT COST

Sl.No	Particulars	Amount
1	Land and building	Rented
2	Machineries & equipments	394500
3	Electrification	35000
4	Furniture and fittings	45400
5	Prelim. & pre-operative expenses	13600
6	Working capital	1200000
	Total	1688500

MEANS OF FINANCE

Sl.No	Particulars	Amount
1	Term Loan	365000
2	Working Capital Loan	900000
3	Promoters contribution	423500
	Total	1688500

SALES PER CYCLEs


Sl No	Item	Qty	Unit	Rate	Amount
1	Note books	50000	nos	22.5	1125000
2	Record Books	10000	nos	32	320000
3	Note pads	10000	nos	3	30000
	Total				1475000

SALES FOR 1 YEAR , 14.75*4=59 LAKH COST OF PRODUCTION & PROFITABILITY STATEMENT(in lakhs)


Particulars	1st Year	2nd Year	3rd Year	4th Year	5th Year
No. of working days	300	300	300	300	300
No. of shifts	1	1	1	1	1
Capacity utilization	60	65	70	75	80
Production	59	64	69	72	77
Sales	59	64	69	72	77
COST OF PRODUCTION
Raw materials	42	44.1	46.31	48.63	51.06
Salaries	2.16	2.27	2.38	2.5	2.63
Wages	1.68	1.76	1.85	1.94	2.04
Power charges	0.3	0.33	0.36	0.4	0.44
Repairs & maintenance	0.08	0.09	0.1	0.11	0.12
Insurance	0.08	0.09	0.1	0.11	0.12
Depreciation	0.47	0.47	0.47	0.47	0.47
TOTAL	46.77	49.11	51.57	54.16	56.88
GROSS OPERATING PROFIT	12.23	14.89	17.43	17.84	20.12
EXPENSES
Administrative & selling expenses	1.77	1.95	2.15	2.37	2.61
Other Financial expenses	1.56	1.72	1.89	2.08	2.29
Interest on bank Loan	1.52	1.2	0.88	0.52	0.2
TOTAL EXPENSES	4.85	4.87	4.92	4.97	5.1
Net operating profit	7.38	10.02	12.51	12.87	15.02
Income tax	0.17	0.3	0.43	0.44	0.55
Net profit	7.21	9.72	12.08	12.43	14.47
Add depreciation	0.47	0.47	0.47	0.47	0.47
Cash surplus	7.68	10.19	12.55	12.9	14.94

CASH FLOW STATEMENT(amounts in lakhs)


Particulars	1st Year	2nd Year	3rd Year	4th Year	5th Year
SOURCE OF FUNDS
Share capital	1.22
Profit before taxation	7.38	10.02	12.51	12.87	15.02
Depreciation	0.47	0.47	0.47	0.47	0.47
Increase in bank loan	12.65	0	0	0	0
Total	21.72	10.49	12.98	13.34	15.49
DEPOSITION OF FUNDS
Prelim & pre-operative expenses	0.14	0	0	0	0
Increase in capital expenditure	4.89	0	0	0	0
Decrease in bank loan	2.53	2.53	2.53	2.53	2.53
Decrease in unsecured loans	0	0	0	0	0
Interest on bank loan to bank	1.52	1.2	0.88	0.52	0.2
Taxation	0.17	0.3	0.43	0.44	0.55
Dividend on equity	0	0	0	0	0
Total	9.25	4.03	3.84	3.49	3.28
Opening balance	0	12.47	18.93	28.07	37.92
Net surplus	12.47	6.46	9.14	9.85	12.21
Closing balance	12.47	18.93	28.07	37.92	50.13

BREAK EVEN ANALYSIS(amounts in lakhs)


Particulars	1st bYear	2nd Year	3rd Year	4th Year	5th Year
Sales	59	64	69	72	77
FIXED COST
Salaries	2.16	2.27	2.38	2.5	2.63
Repairs & maintenance	0.08	0.09	0.1	0.11	0.12
Administrative expenses	0.59	0.64	0.69	0.72	0.77
Insurance	0.08	0.09	0.1	0.11	0.12
Depreciation	0.47	0.47	0.47	0.47	0.47
Interest on bank Loan	1.52	1.2	0.88	0.52	0.2
TOTAL	4.9	4.76	4.62	4.43	4.31
VARIABLE
Raw materials	42	44.1	46.31	48.63	51.06
Wages	1.68	1.76	1.85	1.94	2.04
Power charges	0.3	0.33	0.36	0.4	0.44
Selling expenses	1.18	1.28	1.38	1.44	1.54
TOTAL	45.16	47.47	49.9	52.41	55.08
BEP in % of installed capacity	35.40	28.8	24.2	22.6	19.7

PROJECTED BALANCE SHEET(amounts in lakhs)


Particulars	1st Year	2nd Year	3rd Year	4th Year	5th Year
LIABILITIES
Share capital	1.22	1.22	1.22	1.22	1.22
Reserve & surplus	12.47	18.93	28.07	37.92	50.13
Bank loan	12.65	10.12	7.59	5.06	2.53
Total liabilities	26.34	30.27	36.88	44.2	53.88
ASSETS
Opening stock	0	12.47	18.93	28.07	37.92
Gross block	11.86	11.39	10.92	10.45	9.98
Less depreciation	0.47	0.47	0.47	0.47	0.47
Net block	11.39	10.92	10.45	9.98	9.51
Investment	0	0	0	0	0
Current assets	11.39	23.39	29.38	38.05	47.43
Cash & Bank balance	14.95	6.88	7.5	6.15	6.45
Total assets	26.34	30.27	36.88	44.2	53.88

REPAYMENT SHEDULE OF BANK LOAN(amounts in lakhs)


Year	Installment no	Term loan	Installment	Balance	Interest
1	1	12.65	0.6325	12.018	0.41
	2	12.0175	0.6325	11.385	0.39
	3	11.385	0.6325	10.753	0.37
	4	10.7525	0.6325	10.12	0.35
			2.53		1.52
2	5	10.12	0.6325	9.4875	0.33
	6	9.4875	0.6325	8.855	0.31
	7	8.855	0.6325	8.2225	0.29
	8	8.2225	0.6325	7.59	0.27
			2.53		1.2
3	9	7.59	0.6325	6.9575	0.25
	10	6.9575	0.6325	6.325	0.23
	11	6.325	0.6325	5.6925	0.21
	12	5.6925	0.6325	5.06	0.19
			2.53		0.88
4	13	5.06	0.6325	4.4275	0.16
	14	4.4275	0.6325	3.795	0.14
	15	3.795	0.6325	3.1625	0.12
	16	3.1625	0.6325	2.53	0.1
			2.53		0.52
5	17	2.53	0.6325	1.8975	0.08
	18	1.8975	0.6325	1.265	0.06
	19	1.265	0.6325	0.6325	0.04
	20	0.6325	0.6325	0	0.02
			2.53		0.2

PROJECTED DEBT SERVICE COVERAGE RATIO(amounts in lakhs)


Particulars	1st Year	2nd Year	3rd Year	4th Year	5th Year
Net profit	7.21	9.72	12.08	12.43	14.47
Depreciation	0.47	0.47	0.47	0.47	0.47
Rent	0.24	0.25	0.26	0.27	0.28